Finance
Calculator for Simple Interest
Calculate interest wey you earn or pay only on the original principal.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
Interest wey you earn or pay
—
—
Summary
| Amount | |
|---|---|
| Principal | — |
| Total interest | — |
| Balance for end | — |
Compare principal with interest
Dem scale di bars reach di final balance. For simple interest, di interest part dey grow by equal steps every year; compound interest dey gather speed instead.
Balance for each year
| Year | Interest so far | Balance |
|---|
Every year dey add di same interest amount, because na only di original principal dem dey charge interest on.
Formula
Interest = principal × yearly rate × years. Final balance = principal + interest. Yearly interest = principal × yearly rate.
Example wey show the calculation
Principal $10,000 at 4% for 3 years: yearly interest na $10,000 × 4% = $400, total interest na $400 × 3 = $1,200, and di final balance na $11,200.
Where e fit work and limits
Di original principal no change throughout di period wey you enter, and dem no dey add interest to principal. Real loan payments fit reduce di outstanding principal and use daily interest counts. Dis page no dey build dat repayment schedule or include fees. Partial years dey scale interest in proportion. To compare with compounding, di rate and timing rules must match.
Questions wey people dey ask often
How simple interest take differ from compound interest?
For here, simple interest dey use di fixed original principal. Compounding dey add interest wey you don earn to di balance before dem calculate later interest. With positive rate across several compounding periods, dis dey increase growth. Compare di same timeline and rate basis.
When dem dey actually use simple interest?
Dis fixed-principal formula dey useful for basic interest examples and contracts wey principal no change before di end. Some loans wey dem call simple interest dey calculate interest on di outstanding balance, wey payments dey change. Use di actual contract and payment schedule for dat kind loan.
The interest dey stay the same every year?
Yes, so long as di principal and rate no change. Na wetin make am simple interest be dat.
Wetin about part of one year?
Enter di years as fraction, like 2.5. Di interest go follow di time in di same proportion.
Na the ending balance I go repay for loan?
For simple-interest loan wey no get fees or payments before di end, yes. If you dey make payments during di loan period, di calculation go change.
Other tools wey relate to dis
- Calculator for compound interest — see how compounding dey change the same inputs
- Calculator for loan repayment — monthly payments for loan wey interest dey compound
- Calculator for savings target — plan target with monthly saving
Results na estimates; dem no replace advice from qualified professional.